What Manufacturers Need to Know About California's
AB 32 Reducing GHG by 15% by 2020

California’s Climate Assembly Bill 32 Impact on Manufacturing…

What is AB32?

AB 32 requires California to reduce its GHG emissions to 1990 levels by 2020 — a reduction of approximately 15 percent below emissions expected under a “business as usual” scenario.

Pursuant to AB 32, ARB must adopt regulations to achieve the maximum technologically feasible and cost-effective GHG emission reductions.  The full implementation of AB 32 will help mitigate risks associated with climate change, while improving energy efficiency, expanding the use of renewable energy resources, cleaner transportation, and reducing waste.

What Gases or Compounds are Covered Under AB 32?

AB 32 includes the major GHGs and groups of GHGs that are being emitted into the atmosphere.  These gases include:

1.    Carbon dioxide (CO2)
2.    Methane (CH4)
3.    Nitrous oxide (N2O)
4.    Hydrofluorocarbons (HFCs)
5.    Perfluorocarbons (PFCs)
6.    Sulfur hexafluoride (SF6)
7.    Nitrogen trifluoride* (NF3)

*Nitrogen trifluoride was not listed initially in AB 32 but was subsequently added to the list via legislation.

Other compounds, including some aerosols, can also have a strong heat forcing effect on the atmosphere.  This includes black carbon, comprised of microscopic particles which are emitted from incomplete combustion of biomass and fossil fuels.  Reducing black carbon and other so-called short-lived climate pollutants (methane, tropospheric ozone and some hydrofluorocarbons) will help us slow the acceleration of climate change sooner than by reducing emissions of other GHGs alone.  It will also improve public health, and will be an important element of California’s climate change program strategy.

What Are the Specific Requirements of AB 32?

  • Prepare and approve a Scoping Plan for achieving the maximum technologically feasible and cost-effective reductions in GHG emissions from sources or categories of sources of GHGs by 2020, and update the Scoping Plan every five years.
  • Maintain and continue reductions in emissions of GHG beyond 2020.
  • Identify the statewide level of GHG emissions in 1990 to serve as the emissions limit to be achieved by 2020.
  • Identify and adopt regulations for discrete early actions that could be enforceable on or before January 1, 2010.
  • Adopt a regulation that establishes a system of market-based declining annual aggregate emission limits for sources or categories of sources that emit GHG emissions.
  • Convene an Environmental Justice Advisory Committee to advise the Board in developing and updating the Scoping Plan and any other pertinent matter in implementing AB 32.
  • Appoint an Economic and Technology Advancement Advisory Committee to provide recommendations for technologies, research and GHG emission reduction measures.

How will AB32 Impact California Manufacturers?

Ship & Shore specializes in air pollution abatement equipment and reducing emissions for manufacturers to maintain compliance with local and state agencies.   Depending on the application there are several cost effective, efficient solutions for manufacturers to prepare and meet these regulations by 2020.

One of the most effective solutions for manufacturers that have emissions listed in one or more areas above is a regenerative thermal oxidizer, and possible options to recover heat and re-use for other process heating needs.

AB32 in the News:

The Wall Street Journal’s editorial page recently stated that AB 32 needs more careful study: “The impact will make the state even less attractive to start or expand a business.”

A report by the California’s Legislative Analyst’s Office cited by the Appeal-Democrat forecasts an impact on some parts of California’s economy from AB 32, but finds the exact impact is hard to measure, and the overall impact on the economy will be modest.  The report cites that AB 32 is a “go-it-alone” approach that would result in “economic leakage” to other states.

Ship & Shore helps manufacturers maintain compliance with complete environmental solutions for air pollution abatement and energy and heat recovery systems for maximum efficiency and cost effective operations.  Call or Email us today to see how current and coming regulations may affect your manufacturing application.  Your project may be eligible for significant  cash incentives from energy efficiency programs! Call 562.997.0233   or EMAIL us by clicking here.